Time for an HONEST update

It’s now almost 8 years since Starpharma signed a licence with Shenyang Sky and Land Latex Co. for manufacture and sale of VivaGel condoms to the Chinese government sector. In this price-sensitive announcement in 2016, Starpharma told the ASX that ‘Starpharma and Sky and Land have already commenced regulatory activities to gain approval of a VivaGel condom in China.’

However almost 8 years later, there is nothing to show for it. No apparent registration or sales. No announcements. No update. No anything. To be clear, that’s 30 consecutive quarterly reports and 8 annual reports whereby shareholders have been kept in the dark. Sadly, this appears to be another magic fairy dust announcement by Starpharma that gets shareholders excited, but with no follow through.

On what planet can an ASX-listed company justify not updating shareholders as to where this ‘partnership’ is really at, and what progress, if any, has been made gaining registration in China?

Remarkably and embarrassingly though, Starpharma still see fit to put the Sky and Land logo on slide show presentations and various reports which bolsters the show bag of ‘partnerships’. Of course this ‘licence agreement’ would have almost certainly triggered a KPI for certain executives back in 2016, but the licence had no apparent upfront fee so shareholders have gained nothing.

IMO the silence on this partnership is a disgrace and an indictment on the company. Shareholders would be justified if they feel like they have been treated like fools and mushrooms for 8 long years. Unfortunately shareholders have seen similar magic fairy dust announcements come and go over the years, such as the Indian Viraleze dream, DEP-Remdesivir, and the SPL7013 viral conjunctivitis saga. All announcements and opportunities mysteriously gone begging without adequate explanation.

The new CEO needs to turn over a new leaf for this company regarding communication and transparency and give an honest update to shareholders about this Sky and Land partnership. Is this a new era for Starpharma or just more of the same?